Item No. 10
AGENDA REPORT
DATE: August 11, 2025
TO: Honorable Mayor and City Council
FROM: Jennifer Crawford, Interim City Manger
SUBJECT: Oppose AB 339 (Ortega) Contracting Services
RECOMMENDATION:
That the City Council oppose AB 339 and authorize the Mayor to issue a letter in opposition and take other actions that may be necessary to represent the City Council's position.
BACKGROUND/DISCUSSION:
The state legislature returns to session on August 18th, and it will have until September 12th to pass bills and send them along for the Governor's signature. When it reconvenes, the legislature will consider a bill that will impair the City of Yucaipa's ability to provide effective and efficient service to its residents.
AB 339 (Ortega) —Contracting Services
Existing law authorizes cities to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.
This bill requires the public agency to give the recognized union no less than 60 days' written notice before issuing a request for proposals, request for quotes, or renewing or extending an existing contract, to perform services that are within the scope of work of the job classifications represented by the recognized employee organization.
The author argues that this bill will prevent public agencies from using the RFP/RFQ process to bypass noticing requirements to negotiate with unions when the work being contracted out may impact their members. However, opponents argue that this bill is impractical, unworkable, and a threat to the timely and efficient delivery of municipal services.
The City of Yucaipa relies on contractors to provide a range of administrative and public works services. In addition, the City often uses contractors to temporarily fill recently vacant positions to provide a continuity of service while formal recruitment to fill that position is in process. This bill would impose additional bureaucratic requirements that could disrupt City operations. The extended timelines and procedural hurdles would negatively affect the City's ability to deliver timely and effective services to the community.
FISCAL IMPACT:
The recommendation does not result in a fiscal impact.
Attachment(s):
1. AB 339 current bill language
2. Draft opposition letter
ATTACHMENT 1
AMENDED IN SENATE JULY 15, 2025
AMENDED IN SENATE JUNE 18, 2025
AMENDED IN ASSEMBLY MAY 23, 2025
CALIFORNIA LEGISLATURE-2025-26 REGULAR SESSION
ASSEMBLY BILL No. 339
Introduced by Assembly Member Ortega
January 28, 2025
An act to add Section 3504.1 to the Government Code, relating to public employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 339, as amended, Ortega. Local public employee organizations:
notice requirements.
Existing law, the Meyers-Milias-Brown Act, contains various provisions that govern collective bargaining of local represented employees and delegates jurisdiction to the Public Employment Relations Board to resolve disputes and enforce the statutory duties and rights of local public agency employers and employees. Existing law requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations.
Existing law requires the governing body of a public agency, and boards and commissions designated by law or by the governing body, to give reasonable written notice, except in cases of emergency, as specified, to each recognized employee organization affected of any ordinance, rule, resolution, or regulation directly relating to matters within the scope of representation proposed to be adopted by the governing body or the designated boards and commissions. 96 AB 339 —2—
This bill would require the governing body of a public agency, and boards and commissions designated by law or by the governing body of a public agency, to give the recognized employee organization no less than 60 days' written notice before issuing a request for proposals, request for quotes, or renewing or extending an existing contract to perform services that are within the scope of work of the job classifications represented by the recognized employe c organization. organization, subject to certain exceptions. The bill would require the notice to include specified information, including the anticipated duration of the contract. The bill would also require the public agency, if an emergency or other exigent circumstance prevents the public agency from providing the written notice described above, to provide as much advance notice as is practicable under the circumstances. If the recognized employee organization demands to meet and confer after receiving the written notice, the bill would require the public agency and recognized employee organization to meet and confer in good faith within a reasonable time, as specified. By imposing new duties on local public agencies, the bill would impose a state -mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State -mandated local program: yes.
The people of the State of California do enact as follows:
1 SECTION 1. Section 3504.1 is added to the Government Code, 2 immediately following Section 3504, to read:
3 3504.1. (a) Except as provided in subdivision (c), the 4 governing body of a public agency, and boards and commissions 5 designated by law or by the governing body of a public agency, 6 shall give the recognized employee organization no less than 60 7 days' written notice before issuing a request for proposals, request 8 for quotes, or renewing or extending an existing contract, to 9 perform services that are within the scope of work of the job 96 — 3 — AB 339
1 classifications represented by the recognized employee 2 organization.
3 (b) The written notice specified in subdivision (a) shall include 4 all of the following:
5 (1) The anticipated duration of the contract.
6 (2) The scope of work under the contract.
7 (3) The anticipated cost of the contract.
8 (4) The draft solicitation, or if not yet drafted, any information 9 that would normally be included in a solicitation.
10 (5) The reason the public agency believes the contract is 11 necessary.
12 (c) If an emergency or other exigent circumstance prevents the 13 public agency from providing the amount of notice required by 14 subdivision (a), the public agency shall provide as much advance 15 notice as is practicable under the circumstances.
16 (d) If the recognized employee organization demands to meet 17 and confer after receiving the written notice, the public agency 18 and recognized employee organization shall, within a reasonable 19 time, meet and confer in good faith relating to the public agency's 20 proposed decision to enter into the contract and any negotiable 21 effects thereof.
22 (e) (1) This section shall not diminish any rights of an employee 23 or recognized employee organization provided by law or a 24 memorandum of understanding.
25 (2) This section shall not invalidate any provision of a 26 memorandum of understanding in effect on the operative date of 27 this section.
28 (3) This section does not apply to a contract for construction, 29 alteration, demolition, installation, repair or maintenance work 30 that is subject to Chapter 1 (commencing with Section 1720) of 31 Part 7 of Division 2 of the Labor Code or a contract for highly 32 specialized data, software, or services related to that construction, 33 alteration, demolition, installation, repair, or maintenance work. 34 (/) Nothing in this section shall be construed to exempt contracts 35 from the notice, meet and confer, or other procedural requirements 36 applicable to contracting for services under existing collective 37 bargaining laws, including this chapter.
38 SEC. 2. No reimbursement shall be made pursuant to Part 7 39 (commencing with Section 17500) of Division 4 of Title 2 of the 40 Government Code for costs mandated by the state pursuant to this 96 AB 339 — 4 —
1 act. It is recognized, however, that a local agency or school district 2 may pursue any remedies to obtain reimbursement available to it 3 under Part 7 (commencing with Section 17500) and any other law. 0 96
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AB 339 (Ortega) Page 1 of 9
SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT Senator Lola Smallwood -Cuevas, Chair
2025 - 2026 Regular
Bill No: AB 339 Hearing Date: July 9, 2025
Author: Ortega
Version: June 18, 2025
Urgency: No Fiscal: Yes
Consultant: Glenn Miles
SUBJECT: Local public employee organizations: notice requirements
KEY ISSUE
This bill requires public agencies regulated by the Meyers-Milias-Brown Act (MMBA) to give a recognized employee organization no less than 60 days' written notice regarding contracts to perform services that are within the scope of work of job classifications represented by the recognized employee organization.
ANALYSIS
Existing law:
1) Authorizes counties to contract for special services on behalf of the following public entities: the county, any county officer or department, or any district or court in the county. Special services or special skills contracts shall be with persons specially trained, experienced, expert and competent to perform the special services. (Government Code (GC) §31000)
2) Authorizes counties to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, provided the board determines that it is in the economic interest of the county to provide such temporary help by contract, rather than employing persons for such purpose. Use of temporary help under this section shall be limited to a period of not to exceed 90 days for any single peak load, temporary absence, or emergency situation. (GC §31000.4)
3) Authorizes cities to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters. (GC §37103)
4) Authorizes the legislative body of any public or municipal corporation or district to contract with and employ any persons for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters if such persons are specially trained, experienced, and competent to perform the special services required. (GC §53060)
5) Provides several statutory frameworks under California law to provide public employees collective bargaining rights, govern public employer -employee relations, and limit labor strife and economic disruption in the public sector through a reasonable method of resolving disputes regarding wages, hours and other terms and conditions of employment between public employers and recognized public employee organizations or their exclusive representatives. These include the Meyers-Milias-Brown Act 1 of 8 7/21/2025, 10:38 AM
SENATE HEALTH https://ctweb.capitoltrack.comBills/25Bills/asm/ab 0301-0350/ab 339... (MMBA) which provides for public employer -employee relations between local government employers and their employees, including some, but not all public transit districts. (Government Code §3500 et seq.) 6) Establishes PERB, a quasi-judicial administrative agency charged with administering certain statutory frameworks governing employer -employee relations, resolving disputes, and enforcing the statutory duties and rights of public agency employers and employee organizations. (Government Code §3541) This bill:
1) Requires the public agency to give the recognized union no less than 60 days' written notice before issuing a request for proposals, request for quotes, or renewing or extending an existing contract, to perform services that are within the scope of work of the job classifications represented by the recognized employee organization.
2) Requires the written notice to include all of the following:
a. The anticipated duration of the contract.
b. The scope of work under the contract.
c. The anticipated cost of the contract.
d. The draft solicitation, or if not yet drafted, any information that would normally be included in a solicitation.
e. The reason the public agency believes the contract is necessary. 3) Provides that if an emergency or other exigent circumstance prevents the public agency from providing the required amount of notice the public agency shall provide as much advance notice as is practicable under the circumstances.
4) Requires the public agency and the union, if the union demands so, to meet and confer within a reasonable time in good faith relating to the public agency's proposed decision to enter into the contract and any negotiable effects thereof.
5) Provides that the bill's provisions shall not diminish any rights of an employee or recognized union provided by law or a memorandum of understanding.
6) Provides that the bill's provisions shall not invalidate any provision of a memorandum of understanding in effect on the operative date of this bill.
7) Provides that no reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. 8) Recognizes, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.
COMMENTS
1. Committee Amendments
The committee recognizes the importance of ensuring that local public employers adhere to the long- standing state policy that public agency employees, not private contractors, perform public agency work.
This bill supports that policy.
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However, the committee acknowledges the many concerns expressed by several groups regarding this bill's potential unintended consequences. While unable to address all opposition concerns, the committee recommends the author take the following amendments in this committee to ensure that certain contracts for specialized public works projects are exempt from the bill's provisions to avoid interruptions in key projects. The committee also encourages the author to continue to work with opposition to address their remaining concerns if the bill proceeds:
Government Code 3504.1
(e) (1) This section shall not diminish any rights of an employee or recognized employee organization provided by law or a memorandum of understanding.
(2) This section shall not invalidate any provision of a memorandum of understanding in effect on the operative date of this section.
(3) This section does not apply to a contract for construction, alteration, demolition, installation, repair, or maintenance work that is subject to Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code or a contract for highly specialized data, software, or services related to that construction, alteration, demolition, installation, repair, or maintenance work. (n Nothing in this section shall be construed to exempt such contracts from the notice, meet and confer, or other procedural requirements applicable to contracting for services under existing collective bargaining laws, including the Meyers-Milias-Brown Act.
2. Need for this bill?
According to the author:
"Local governments use a procurement process, often involving RFPs and requests for qualifications (RFQs), for externally contracted services. This process is distinct from formal competitive bidding and can have different requirements regarding public bidding laws and disclosure. Additionally, proposals submitted in response to an RFP or RFQ are typically exempt from disclosure under the California Public Records Act.
When local governments decide to contract out the work of their public employees, the Meyers-Milias- Brown Act (MMBA) and the Public Employment Relations Board (PERB) case law requires the agency to notify the union and bargain over either the decision or its impacts. However, very few local governments comply with this requirement. Unions are unaware that their bargaining unit work has been contracted out until it's too late to meaningfully engage their existing bargaining rights."
3. Proponent Arguments
According to Service Employees International Union, California:
"Under the Meyers-Milias-Brown Act (MMBA), California local governments are generally required to notify employee unions before contracting for work traditionally performed by bargaining unit members.
This notice is part of the obligation to engage in good faith bargaining and allows the union to negotiate the decision or the impacts of contracting out represented employees. However, since the beginning of the privatization movement, local governments have rarely complied with this requirement. As local governments have increasingly shifted public services to the private sector, union density has declined, 3 of 8 7/21/2025, 10:38 AM
SENATE HEALTH https://ctweb.capitoltrack.comBills/25Bi11s/asm/ab_0301-0350/ab_339 ... resulting in lower wages and working conditions for all Californians.
AB 339 would require local governments to notify unions of plans to contract out bargaining unit work 60 days before engaging in an RFP or RFQ process. This notification will allow unions to exercise their right to bargain over the decision or impacts of contracting out before employers begin the process to do so. The 60-day timeframe will allow both parties to schedule and complete multiple negotiation sessions, if needed."
According to California Federation of Labor Unions:
"Contracting out by local government has eliminated good union public sector jobs that provide a path to the middle class. Large-scale privatization has led to the decline of public sector union density and a reduction in working conditions and lower wages. Contracting out practices that fail to adhere to responsible contracting standards further undermine collective bargaining rights of public sector workers while simultaneously reducing the quality of essential services and increasing the cost of public service delivery."
4. Opponent Arguments:
According to the County of Los Angeles:
"AB 339 undermines timely service delivery and creates disincentives for finalizing labor agreements. It applies to contracts overlapping with represented job classifications, impacting a vast majority of LA County contracts. It also expands obligations under the Meyers-Milias-Brown Act (MMBA), interfering with longstanding contracting practices and provisions in Memoranda of Understanding (MOUs), ultimately harming public services.
The bill's lack of a clear definition for emergencies weakens emergency contracting authority and creates inefficiencies. In disasters, such as the January wildfires in Los Angeles, AB 339 would delay recovery, increase costs, and worsen community suffering."
According to the California Association of Nonprofits:
"AB 339 would require nearly every contract proposed by local agencies to be subject to notice and possibly meet -and -confer requirements. This is impractical in execution, and unworkable for ensuring provision of public services, which are often carried out faithfully by nonprofit organizations.
Furthermore, there is a lack of clarity about what topics are allowed to be discussed during the `demand to meet -and -confer', such as limiting discussion purely to the RFP language. As written, AB 339 could deter local agencies from working in partnership with local community organizations like nonprofits, who are at the front lines of providing critical local services, and who are already under attack by the federal government, adding considerable uncertainty to our sector's ongoing financial viability." According to a coalition of contracting organization representatives, including the American Council of Engineering Companies:
"AB 339 will significantly delay public works projects and could grind building permit processing, design, and construction of needed housing or infrastructure projects to a halt. Public works projects involve multiple phases of design, which require a diverse array of services — including site assessments, geotechnical services, land surveys, plan check, and traffic studies, to name just a few — that cannot be fully known until earlier phases have [been] completed, making it impossible for agencies to complete all of AB 339's notification pauses at the outset of a project. These notices would therefore be compounded, causing projects to be delayed by multiples of the 60-day pause before a shovel ever touches the ground." 4 of 8 7/21/2025, 10:38 AM
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5. Prior Legislation:
AB 2557 (Ortega, 2024) would have placed requirements on local governmental agencies related to contracting out services, as specified. This bill died in the Senate Appropriations Committee.
AB 2561 (McKinnor, Chapter 409, Statutes of 2024) required a public agency to present the status of vacancies and recruitment and retention efforts during a public hearing before the governing board at least once per fiscal year and entitles the union for a bargaining unit to make a presentation at the public hearing, as specified.
AB 2489 (Ward, 2024) would have required a local government that wants to contract for special services or temporary help already performed by union employees to notify, in writing, the exclusive representative of the workforce, at least 10 months before beginning a procurement process to contract for special services that are currently, or were in the previous 10 years, performed by employees of the county, any county officer or department, or any district court in the county represented by an employee organization, of its determination to begin that process. This bill died in the Assembly Appropriations Committee.
AB 1250 (Jones -Sawyer, 2017) would have prohibited a county from contracting for personal services currently or customarily performed by that county's employees unless it made specified findings. The Senate Rules Committee held this bill in committee.
SUPPORT
Service Employees International Union, California (Co-sponsor) American Federation of State, County and Municipal Employees (Co-sponsor) California Federation of Labor Unions (Co-sponsor)
California Nurses Association
California Professional Firefighters
California Safety and Legislative Board, Smart — Transportation Division California School Employees Association
California Teachers Association
Center for Biological Diversity
Central Coast Alliance United for a Sustainable Economy Courage California
Echo Park United Methodist Church
Equal Rights Advocates
Greenpeace USA
IATSE Local 33
LA Plaza United Methodist Church
Los Angeles Alliance for a New Economy
Los Angeles Black Worker Center
Lutheran Office of Public Policy - California
National Union of Healthcare Workers
Peace Officers Research Association of California
Professional Engineers in California Government
Public Advocates INC.
Santa Barbara County Action Network
Tech Equity Action
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UAW Region 6
Union of American Physicians and Dentists
Urban Habitat
OPPOSITION
Abrazar, INC.
Advocate Association of California Water Agencies
American Council of Engineering Companies
American Institute of Architects California
American Society of Civil Engineers, Region 9
American Staffing Association
Aresis Ensemble (City Garage Theatre)
Association of California Healthcare Districts
Association of California Water Agencies
Association of Community Human Service Agencies
Bay Area Air Quality Management District
Bay Area Bioscience Education Community
Building a Generation
C&A: Social Impact Consulting
Cal Chamber
California & Nevada Civil Engineers and Land Surveyors Association California Alliance of Child and Family Services
California Animal Welfare Association
California Association for Local Economic Development
California Association of Nonprofits
California Association of Public Hospitals & Health Systems California Association of Recreation & Park Districts
California Association of Sanitation Agencies
California Behavioral Health Association
California Building Officials
California Chapters of the American Public Works Association California Contract Cities Association
California Geotechnical Engineers Association
California Landscape Contractors Association
California Parks & Recreation Society
California Special Districts Association
California Staffing Professionals
California State Association of Counties
California State Sheriffs' Association
California Transit Association
California -Nevada Section, American Water Works Association Ceres Community Project
Children's Institute
City of Bakersfield
City of Barstow
City of Beaumont
City of Chino Hills
City of Colton
City of Eureka
City of Fortuna
City of Foster City
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City of Inglewood
City of Kerman
City of La Habra
City of La Verne
City of Lakeport
City of Lincoln
City of Livermore
City of Lomita
City of Los Banos
City of Madera
City of Manteca
City of Martinez
City of Montclair
City of Newport Beach
City of Norwalk
City of Pittsburg
City of Redwood City
City of Simi Valley
City of Upland
City of Vernon
City of Vista
City of Waterford
City of Whittier
Coastal Nonprofit Consulting
Collective Resilience
Community Bridges
Contra Costa Water District
County Health Executives Association of California
County of Butte
County of Contra Costa
County of Fresno
County of Humboldt
County of Kern
County of Kings
County of Lake
County of Los Angeles
County of Mendocino
County of Merced
County of Nevada
County of Orange
County of Placer
County of Riverside
County of Sacramento
County of San Benito
County of San Bernardino
County of San Joaquin
County of San Mateo
County of Santa Clara
County of Santa Clara Office of the County Counsel
County of Siskiyou
County of Sutter
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County of Tulare
County of Ventura
Creative Alternatives
DUC Learning Center
Elsinore Valley Municipal Water District
Family Service Association
Helix Water District
Immigrant Legal Defense
Jewish Family Service of San Diego
Jurupa Community Services District
Kidstream Children's Museum
League of California Cities
Mend -Meet Each Need With Dignity
Mountain Homeless Coalition
Office of Samoan Affairs
Open Heart Kitchen
Orange County Business Council
Orange County Sanitation District
Oxnard Performing Arts Center Corporation
PATH
Peninsula Family Service
Public Risk Innovation, Solutions, and Management
Queen of Hearts Therapeutic Riding Center, INC.
Raices Y Carino
Richmond Community Foundation
Rural County Representatives of California
SACRA/PROFANA
San Diego Humane Society
San Francisco Study Center
Silicon Valley Council of Nonprofits
South San Joaquin Irrigation District
The Aresis Ensemble INC.
The Can Man
The Nonprofit Partnership
Town of Apple Valley
Town of Truckee
Transportation California
Tree People
Turning Point
Turning Point Community Programs
Urban Counties of California
VistAbility
Waymakers
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ATTACHMENT 2
CITY OF
August 12, 2025
The Honorable Liz Ortega
California State Assembly
1021 0 St, Suite 5120
Sacramento, CA 95814
RE: Oppose AB 339 (Ortega) Contracting Services Notification Dear Assemblymember Ortega,
On behalf of the City of Yucaipa, I am writing to oppose AB 339. This bill would create major roadblocks for our city in delivering essential services to residents, responding to emergencies, and completing important public projects. While we value our employees and their association, this measure goes too far and could harm the very communities we serve.
AB 339 requires cities like ours to give unions at least 60 days' written notice before even starting the process to contract for services that might overlap with union jobs. This includes sharing details like costs, scopes, and drafts of requests for proposals. If the union asks, we must then meet and negotiate, which could add even more delays. Most of our contracts involve some level of overlap with city job classifications, so this would affect nearly everything we do, from routine maintenance to partnering with nonprofits for community programs.
In a city like Yucaipa, where we face risks like wildfires and other emergencies, these rules could slow us down when time matters most. The bill mentions exceptions for emergencies, but it doesn't clearly define what counts as one, leaving us open to disputes and delays during critical moments.
For example, if we need quick help for disaster recovery, waiting 60 days, or even less if it's "practicable", could increase costs and prolong suffering for our residents. We've seen this in nearby areas, and we can't afford that here.
Public works projects would stall. Building permits, housing developments, and infrastructure like roads and water systems involve many steps and specialized help. Under AB 339, we'd have to pause for 60 days at multiple points, stacking up delays that could stop projects before they even start. In a growing community like ours, this means higher costs, lost jobs, and missed opportunities to build the housing and facilities our residents need. In addition, we are a City with a small staff.
In cases where a position becomes vacant, we need the ability to use contract staff to maintain continuity of operations while formal recruitment occurs as we simply do not have redundant staff on standby.
City of Yucaipa
34272 Yucaipa Blvd, Yucaipa, CA 92399
909-797-2489
We already follow existing laws under the Meyers-Milias-Brown Act for bargaining with unions, and this bill expands those rules in ways that interfere with our long-standing practices and agreements. It creates inefficiencies without solving real problems and could even discourage us from finalizing fair labor deals.
For these reasons, the City of Yucaipa opposes AB 339. Thank you for considering our concerns.
Sincerely,
Jon Thorp
Mayor
cc. Senator Rosalice Ochoa Bogh
Assemblyman Greg Wallis
Laura Varela, Cal Cities, Regional Public Affairs Manager League of California Cities, [email protected]
City of Yucaipa
34272 Yucaipa Blvd, Yucaipa, CA 92399
909-797-2489